Getting Started with Indices
The Most Innovative way to Trade Groups of Publicly Traded Companies
What are Indices?
A financial index is composed of public companies traded on a particular stock exchange, or drawn from a particular field. The index calculates the collective market performance of all its component companies and publishes the figures. Indices are seen as accurate barometers of market sentiment as well as the strength of an economy. It is possible to open CFD trades on the market performance of several indices, investing in the points change in their values.
There are many prominent indices, as well as less familiar ones from emerging markets available at TradingTeck. Some of the biggest indices include the FTSE 100, S&P 500, NASDQ-100 and DAX. When traded as CFDs, indices generally perform in a similar way to stocks.
The Basic Principles of Indices Trading
Indices trading is like any other form of transaction. The goal is to buy Indices at a low price and sell them at a high price.
You buy 10 x DAX 30 units at $12,162.47 per unit (using our leverage).
After 1 week you sell your DAX 30 units and earn a profit of $230.7.
How is that possible?
A week after you opened your position, DAX 30 was quoted at $12,185.54 (Bid price) to 12,187.99 (Ask price).
You bought 10 units and paid $121,624.7.
You sold the 10 stocks and got $121,855.4.
You earned $230.7
Enjoy Low Cost Investing on Major Global Indices
TradingTeck offers all traders low cost commission free investing. There are no hidden fees or service charges. Instead we offer highly competitive fixed spreads on the world’s major indices. The investment process is completely transparent and allows hands on account management.
Diversify your Trading Portfolio With Indices
Indices generally perform in a similar way to stocks but are (arguably) less vulnerable to sudden declines than individual companies. When you trade indices at TradingTeck you don’t actually buy the index. You are investing on its future performance and aiming to profit from changes to its points value. Below are TradingTeck most popular indices:
- FTSE MIB
For a full list of our available assets visit our Asset Index.
Open Leveraged CFD Trades on Indices
TradingTeck traders can use up to x200 leverage to boost their initial investments and gain a high level of market exposure. Leverage enables you to aim for significant profits while utilizing modest investment capital. We strongly recommend that you visit our Education Center to learn more about how to use leverage effectively.
Advantages of Trading Indices at TradingTeck
CFDs have made it possible for traders to invest on the performance of indices and they are becoming a very popular form of investment. The value of indices closely reflects wider market trends, making them handy for new traders. The TradingTeck Daily Report keeps you up to date with the performance of major indices and our live charts allow you to analyse their performance, both in real time and as past data.
Who can trade Indices?
Online Indices trading is already a highly popular form of investment with millions of traders worldwide. Almost anybody can trade Indices if they are willing to apply the basic principles of risk management. The TradingTeck online Education Center contains all the learning tools and educational resources that you need to begin online Indices trading.
Many of TradingTeck top investors signed up as absolute beginners with no experience of the financial markets. They used the Education Center and free Demo Account to master the basics of Indices trading. Indices traders range from novice investors who trade part time, to expert investors who manage complex personal portfolios on a full time basis. The TradingTeck platform gives you the freedom to set your own financial goals and manage your own investments.
New to CFD Trading?
Choose the account type that best matches your initial trading budget and expectations and we will help you to get the very best out of your trading experience.
- Open a trading account
- Fund your account
- Get a premium training package and learn to trade
Choose the account type that best matches your experience level and financial goals. Your account manager will be available to discuss how best to enter the markets.
- Open a trading account
- Fund your account
- Start Trading